Gross NPAs Under MUDRA Scheme Edge Up Slightly to 2.21% in FY25

May 13, 2025 admin 0 Comments agricultural finance, cooperative banks, e-Kisan Upaj Nidhi, e-KUN portal, electronic negotiable warehouse receipts, farm credit expansion, farm loans, formal credit for farmers, Jansamarth portal, NCGTC platform, private sector banks, public sector banks, rural liquidity

The gross non-performing assets (GNPA) under the Pradhan Mantri Mudra Yojana (PMMY) rose marginally to 2.21% in 2024-25, compared to 2.1% in the previous fiscal year, according to data released by the Finance Ministry. After peaking at 3.61% in 2020-21, the GNPA ratio had shown a consistent decline until 2023-24. However, provisional figures up to December 2024 indicate a slight uptick.

Under Mudra loans, any loan with three successive missed instalments is classified as a non-performing asset.

Meanwhile, the newly introduced ‘Tarun Plus’ category under PMMY has received a strong initial response. “As many as 24,557 new borrowers took loan under the ‘Tarun Plus’ category amounting to Rs. 3,790 crore in a short period of four months during FY25,” Financial Services Secretary M Nagaraju told reporters.

Launched in October 2024 following the July Budget announcement, the Tarun Plus scheme doubled the loan limit to Rs. 20 lakh for entrepreneurs who had successfully repaid their earlier ‘Tarun’ category loans.